What's going on?

Axel Springer saw its shares surge 22% on Thursday following news that investment firm KKR was looking to take the German media giant private.

What does this mean?

Europe�s largest publishing house � owner of the continent�s top-selling newspaper, Bild, as well as international websites like Business Insider � has struggled to juggle its old-school news and new-school online advertising arms. Despite investing heavily in its more profitable digital offering, tough competition has seen Axel Springer�s shares shed a quarter of their value in the last 12 months � and March�s announcement that the company wasn�t expecting any profit growth in 2019 didn�t help matters.


Private equity firm KKR thinks it could do better. It�s seeking the approval of Axel Springer�s CEO and the widow of its founder, who together own 45% of the $6 billion-valued company, to make an offer for the rest of its shares.

Why should I care?

For markets: More spring in everyone�s step.

In taking Axel off the stock market, KKR (which has previous experience in German media) may hope to split up some of the company�s off- and online publishing businesses before listing shares of the restructured firm at a tidy profit � as it�s shortly planning to do with transport-booking app Trainline. The deal isn�t guaranteed, however: recent failed private equity plays for listings site Scout24 and plastic packager RPC prove that things don�t always go to plan.

The bigger picture: Private equity is taking over.

The �alternative� investment industry is expected to control $14 trillion by 2023, up from $9 trillion in 2017 � and private equity firms, which own shares in non-stock market-listed companies, are expected to overtake hedge funds as its largest sub-sector. While several big US firms are finally �going public�, private equity spending in Europe is currently at a 12-year high. And with companies sitting on record amounts of cash, such investment is only likely to become more widespread � and more accessible to investors like you.